Inmet and Petaquilla Copper Reach Agreement On Acquisition

    TORONTO, Aug. 26 /CNW/ - Inmet Mining Corporation ("IMN" - TSX) and
Petaquilla Copper Ltd. ("PTC" - TSX) announced today that they have signed a
letter agreement pursuant to which PTC's board of directors has agreed to
unanimously support a revised offer by Inmet to acquire all the outstanding
common shares of PTC (the "Offer"). Pursuant to the terms of the revised
Offer, PTC shareholders will be entitled to receive $2.20 in cash per PTC
common share. The directors and officers of PTC have indicated, and Petaquilla
Minerals Ltd. which owns 20,418,565 common shares of PTC has agreed, that they
will enter into lock-up agreements with Inmet pursuant to which they will
tender their PTC common shares to the revised Offer. A total of 37,836,129
common shares of PTC or approximately 25.4 percent of PTC's outstanding common
shares on a fully diluted basis will be subject to lock-up agreements.
    Inmet and PTC will work together to settle and execute as soon as
practicable a support agreement containing usual and customary terms providing
for, among other things, minimum acceptance of the revised Offer by PTC
shareholders holding at least 66 2/3 percent of the outstanding shares of PTC
calculated on a fully diluted basis (excluding PTC common shares currently
owned by Inmet and its affiliates), a non-solicitation covenant, customary
fiduciary out provisions, a right in favour of Inmet to match a superior
proposal and the payment to Inmet of a termination payment in certain
circumstances. The support agreement will also provide for the immediate
cessation of PTC's activities on or relating to the Petaquilla concession. PTC
and Inmet expect the support agreement to be finalized and executed by them by
no later than Friday, August 29, 2008.
    Inmet also expects to mail to PTC shareholders a notice of extension and
variation related to the revised Offer of $2.20 in cash per PTC common share
subsequent to execution of the support agreement. In the meantime, Inmet will
extend the current offer of $2.00 per PTC common share until 11:59 p.m.
(Toronto time) on September 8, 2008.
    This press release does not constitute an offer to buy or the
solicitation of an offer to sell any of the securities of Petaquilla Copper.
    This press release is also available at and

    About Inmet

    Inmet is a Canadian-based global mining company that produces copper,
zinc and gold. Inmet has interests in four mining operations in locations
around the world: Cayeli, Pyhdsalmi, Troilus and Ok Tedi. Inmet also has
interests in three development properties, Las Cruces, Cerattepe and

    About Petaquilla Copper Ltd. - Petaquilla Copper Ltd. is a resource
development company headquartered in Vancouver, Canada. Its shares are listed
on the Toronto Stock Exchange under the symbol PTC.

    Forward looking information

    Securities regulators encourage companies to disclose forward-looking
information to help investors understand a company's future prospects. This
press release contains forward-looking information. These are
"forward-looking" because we have used what we know and expect today to make a
statement about the future. Forward-looking statements usually include words
such as may, expect, anticipate, and believe or other similar words. Capital
and operating cost estimates are forward-looking statements, and are based on
assumptions that we believe to be reasonable. However, actual events and
results could be substantially different because of the risks and
uncertainties associated with our respective business or events that happen
after the date of this press release. You should not place undue reliance on
forward-looking statements.

For further information:

For further information: Jochen Tilk, President and Chief Operating
Officer, Inmet Mining Corporation, (416) 860-3972; Richard Fifer, Chief
Executive Officer and Director, Petaquilla Copper Ltd., (604) 694-0021

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890